Bought a new (leftover) Tao Tao last summer, 125 3 speed with reverse. Daughter rode it just a handful of times then we went on a trip where the trails were really challenging. Long story short, it got stuck in reverse, took it back where we bought it and they said even manufacturer wasn't familiar with that happening, couldn't fix it so they replaced the engine and transmission. He said they rode it around for a couple hours to ensure it was ok. Didn't use it for a long time, then when we did it was smoking after a mile or so. Got worse. Seemed like oil smoke, but it wasnt coming from the exhaust, or at least not all of it was. Thought oil was leaking out somewhere and burning off, but I just couldn't find where. Thought if a little oil got somewhere during the engine swap it should burn off, but it didn't go away by the time we made it home. Now I'm wondering if it could have been clutch? Maybe way out of adjustment? Didn't smell like clutch, looked and smelled more like oil but idk, it was months ago now.
Also, went to try it the other day and it was dead, stored inside heated garage so I didn't take the battery out. But after charging and eventually switching to another battery, still no power at all, I think the keyswitch is bad, it feels funny so I bought a new one to try. So if I can get it started and if it still smokes, what should I be looking at? It doesn't leak, oil isn't low, and it's no coming out of the pipe.

 

Id start by washing it before you ride it the next time to remove any oil from the outside of the engine. run it a while and then get it inside where there is no wind and look for where the smoke is coming from.

 

Make sure brake light is coming on, if not that's your prob.

 

Once you get it running take it for another run. New parts sometimes take days of riding before the manufacturing oils will burn off. New Arctic cat it was about 4 days or 6 hour rides before the thing stopped stinking.